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Mandatory Environmental Audit


Environmental Law
In order to guarantee the implementation of environmental protection and management, the Government of the Republic of Indonesia has issued Minister of Environment Regulation Number 3 of 2013 on Environmental Audit (“Regulation 3/2013”). This Regulation 3/2013 aims to provide guidelines on the implementation of certification of Environmental Auditor Competency and Environmental Audit. 
Environmental Audit is an evaluation conducted to assess the compliance of a person in charge of the business and/or activity with respect to the legal requirements and policies stipulated by the government. Environmental Audit is conducted on the business and/or activity that has environmental documents and it can be conducted to more than one business and/or activity located in one area. Environmental Audit can be performed on a voluntary basis by a person in charge of the business and/or activity, or as required by Minister who administers government affairs in the field of environmental protection and management (often referred to as the “Mandatory Environmental Audit”).
Mandatory Environmental Audit is applied to business and/or activity which have a high risk to the environment. The Mandatory Environmental Audit shall be carried out periodically in accordance with the period of the environmental audit of each business and/or activity. The business and/or activity which are obliged to conduct the Mandatory Environmental Audit are as follows:
  1. Industry Sector: cement, petrochemical, pesticide active ingredient, ammunition and explosive industries.
  2. Public Works Sector: the operation of dams/reservoirs or other types of water reservoirs.
  3. Energy andMineral Resources Sector: oil and gas processing activities, oil and gas transmissions, mineral exploitation including its processing by submarine tailings placement, exploitation of radioactive minerals including processing and refining, hydroelectric power plant (PLTA), steam power plant (PLTU).
  4. Nuclear Development Sector: the operation of nuclear power plant (NPP) or a non-powered reactor.
  5. Management of Toxic and Hazardous Materials (B3) and Their Waste Sector: collecting, utilizing, processing and hoarding of waste of toxic and hazardous materials (B3). (* with specific conditions set our further in Exhibit I of Regulation 3/2013)

However, it should be noted that other than on the basis of high risk to the environment, the business and/or activity may also be required to conduct a Mandatory Environmental Audit if it turns out that the business and/or activity shows the presence of non-compliance with laws and regulations on environmental protection and management.

There is no criminal sanction if the person in charge of the business and/or activity does not conduct the obligation to perform the environmental audit, nevertheless, Minister of Environment may execute or assign an independent third party to carry out an environmental audit for that business and/or activity on the expense of the person in charge of the business and/or activity concerned. 
Source: Ekonid